Summary:

On 11 July 2023, the European Investment Bank (EIB) and the Tunisian government signed a €40 million financing agreement to construct 80 primary schools in Tunisia. The financing will also support transit options to ensure children can travel to the schools.

The deal was signed by Samir Saied, Tunisia’s Minister of Economy and Planning who emphasized the need for “inclusive education” and a desire to “reduce school dropouts.”

The deal comes as a conflict continues to boil between the Tunisian Ministry of Education and labor unions representing primary school teachers. Teachers have protested demanding higher pay and the Ministry has fired hundreds of school leaders. In response, teachers continue to withhold submission of grades.

Recent information from the Tunisian Association tunisienne de défense des droits de l’enfant indicated that 26% of Tunisian children currently live below the poverty line. And approximately 50% of children do not complete the equivalent of a high school education.

Outlook:  

Investment in education is a critical component of a broader and longer-term strategy to achieve economic and social stability in Tunisia. Many children lack safe and healthy environments in which to pursue an education, with some facing a variety of pressures that end their education early, including the need provide financial support to their families.

This development deal is a long-term investment, so does not greatly impact the potential for risks emanating from disruptions to school operations. If the government is able to reach a deal with the IMF by completing required reforms, outside funding for additional development projects like this one is likely to increase.

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